Here Is a Two-Way Table of the Numbers of College

question 35

Multiple Choice

Here is a two-way table of the numbers of college students (U.S. citizens only) classified by racial/ethnic group and by whether they attend a public or a private college. The entries are in thousands of students.

There is no reason to use the chi-square test on these data, because

• A) the hypothesis that chi-square tests makes no sense here.
• B) the data describe the entire population of college students, so there is no inference from sample to population.
• C) the sample size is so large that any test will certainly be highly significant.
• D) the sample size is too small to allow use of the chi-square test.

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Definitions:

Portfolio

An assortment of investments including stocks, bonds, commodities, cash and equivalents, along with closed-end funds and ETFs (exchange traded funds).

Market Risk Premium

The additional return an investor expects from holding a risky market portfolio instead of risk-free assets.

Expected Inflation

The rate at which the general level of prices for goods and services is rising, and subsequently, purchasing power is falling, as anticipated by consumers, businesses, and investors.

Required Return

The minimum rate of return on an investment that investors expect to compensate them for the level of risk.